Kerala HC Quashes ITC Denial as Returns Were Filed Within Section 16(5) Cut-Off Date

Core Constructions Vs State Tax Officer (Kerala High Court)

The petitioner challenged an order passed under Section 73 of the CGST/SGST Act, 2017, which denied input tax credit (ITC) for November 2018, December 2018, and January 2019 to March 2019 on the ground that returns were not filed within the period prescribed under Section 16(4) of the CGST Act.

The petitioner contended that Section 16(5) of the CGST Act entitled it to claim ITC because the relevant returns had been filed before the cut-off date of 30.11.2021. The assessment order itself recorded that the returns for the relevant periods were filed on 15.11.2019, 19.10.2020, and 01.09.2021.

The Kerala High Court found that the returns had been filed within the cut-off date specified under Section 16(5). Accordingly, the Court quashed the assessment order and directed the State Tax Officer to reconsider the matter and grant the benefit of ITC under Section 16(5), if the petitioner was otherwise entitled to it.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioner is a registered tax payer under the provisions of the CGST/KSGST Act. The challenge in this writ petition is against Ext.P6 order passed under Section 73 of the CGST/SGST Act, 2017 by which, the input tax credit claimed by the petitioner was rejected pertaining to the months of November 2018, December 2018 and January 2019 to March 2019. The denial of the input tax credit was on the ground that the petitioner failed to submit the returns within the statutory period contemplated under Section 16(4) of the CGST Act.

2. The contention of the petitioner, while raising the challenge against Ext.P6 is that, in the light of Section 16(5) of the CGST Act, the petitioner is entitled to get the input tax credit as the said provision specifically provides that, in case the tax payer is submitting the returns within the cut off date contemplated therein, namely, 30.11.2021, such tax payer would be eligible to get the input tax credit.

3. In this case it is evident from Ext.P6 order of assessment itself that, the petitioner had submitted the returns for the relevant months on 15.11.2019, 19.10.2020 and 01.09.2021. Thus it is clear that the petitioner had submitted the returns within the cut off date contemplated under Section 16(5) of the CGST Act and thus, is entitled to the benefit of input tax credit for the relevant period.

In such circumstances, the matter requires re­consideration. Accordingly, this writ petition is disposed of quashing Ext.P6, with a direction to the 1^st respondent to re­consider the matter and grant the benefit of input tax credit under Section 16(5) of the CGST Act, if the petitioner is otherwise entitled to.